26 Aug 2015
USD/JPY high volatility between 118.60/40
FXStreet (Guatemala) - USD/JPY is back below the 119 handle after reclaiming the territory in early Asia post a decline on risk aversion as the Wall Street came to an end.
Wall Street has been buoyed and followed suit of the European session on the back of better risk sentiment as the PBoC intervened to control liquidity in the Chinese economy and improving sentiment in global markets.
PBoC actions
In addition to PBOC injecting 150bn yuan via 7-day reverse repos yesterday, the PBoC cut the RRR by 50bps to 18.00% with additional cuts for individual sectors. The PBoC also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%.
Attention shall now be on the Shanghai Composite Index of shares once again.
Then, for tomorrow, US Durable goods and the DOE crude oil inventories will be of keen interest, with estimates of a draw down of 354K bbls. Today, we had the API crude inventories for the week to August 21st, and as a guide for tomorrow, inventories fell by 7.3m bbls. We will also have more Fed talk from Dudley tomorrow.
USD/JPY downside levels below 121.30 resistance
Volatility remains the theme and levels below the 121.30 come as 120.30, 119.60, 118.40, 116.13 that opens up 115.14. below here we have the 23.6% retracement of the entire move up from the 2011 low at 113.98.
Wall Street has been buoyed and followed suit of the European session on the back of better risk sentiment as the PBoC intervened to control liquidity in the Chinese economy and improving sentiment in global markets.
PBoC actions
In addition to PBOC injecting 150bn yuan via 7-day reverse repos yesterday, the PBoC cut the RRR by 50bps to 18.00% with additional cuts for individual sectors. The PBoC also cut the deposit rate by 25bps to 1.75% and lending interest rates by 25bps to 4.60%.
Attention shall now be on the Shanghai Composite Index of shares once again.
Then, for tomorrow, US Durable goods and the DOE crude oil inventories will be of keen interest, with estimates of a draw down of 354K bbls. Today, we had the API crude inventories for the week to August 21st, and as a guide for tomorrow, inventories fell by 7.3m bbls. We will also have more Fed talk from Dudley tomorrow.
USD/JPY downside levels below 121.30 resistance
Volatility remains the theme and levels below the 121.30 come as 120.30, 119.60, 118.40, 116.13 that opens up 115.14. below here we have the 23.6% retracement of the entire move up from the 2011 low at 113.98.